Reply #53: The story I read in the media is refining capacity is tight. However, [View All]

[Hannah Bell]

all I have to do is look at the industry's own data to see it's not. Here's a graph which makes it more obvious: p. 19. Notice the downtrend in N. america since 2004/05 - the point where prices started spiking.

http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2008/STAGING/local_assets/downloads/pdf/statistical_review_of_world_energy_full_review_2008.pdf

I can add another data point: refining margins, same page. This has to do with refining profit. Notice how Texas starts jumping, again around 04/05.

Now you tell me there could be many reasons, have I investigated x,y,z. Here's what I know: the story I hear in the media is false, by the industry's own data. I don't have to figure out why capacity was tighter 10 years ago to know it's not so tight now, contra the public story. & that refineries are increasing their profit margins.